NEW DELHI: Foreign portfolio investors (FPIs) become net sellers in October, withdrawing Rs 12,278 crore from Indian markets after two months of buying. FPIs took out Rs 13,550 crore from equities from October 1-29, but invested Rs 1,272 crore in debt, according to depositories data. During the period under review, the total net outflow was Rs 12,278 crore. In August and September, FPIs were net buyers. "Excessive valuations have caused foreign brokerages such as Merrill Lynch, UBS, and Nomura to downgrade India.

FPIs may have been compelled to sell on a long-term basis as a result of this, according to V K Vijayakumar, chief investment strategist at Geojit Financial Services. During the first half of October, FPIs were software sellers. Because they are sitting on large earnings, this is profit-booking. They have, nevertheless, been purchasers in banks and cars where the valuation is secure, he added.

This week, equity markets will remain closed on Thursday for Diwali Laxmi Pujan and on Friday for Diwali Balipratipada.

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